Frontera vows to protect Guyana offshore interests

Canada's Frontera Energy and CGX Resources remain committed to developing the Corentyne oil block in Guyana amid fears they could be forced to relinquish the area, executives said on Thursday. 

In July, Guyana's vice president Bharrat Jagdeo said the joint venture's license for Corentyne had expired and was unlikely to be renewed. 

But Frontera CEO Orlando Cabrales insisted the companies had met all legal requirements to maintain the offshore block.

"We remain committed to the potential development of the block," Cabrales told investors in a quarterly earnings call.

"That belief is supported by the discoveries. We have complied with the conditions of the exploration license and we are considering different alternatives to protect our interest in the license. I don't have any more to say at this point in time."

In 2022, the Guyana government revoked concessions held by CGX and Frontera for the Berbice and Demerara blocks after the companies allegedly failed to honor work commitments. 

Meanwhile, Frontera said it was continuing to work with Goldman Sachs to seek divestment or spin-off alternatives for its Colombian infrastructure business.

It said discussions with third parties were "underway," adding that a virtual data room for the assets remained open. 

Frontera's Colombian infrastructure portfolio includes the Puerto Bahia terminal and a 35% equity interest in the ODL pipeline through its wholly owned subsidiary PIL. The company also holds stakes in the Saara reverse osmosis water treatment facility and the ProAgrollanos palm oil plantation.